Rise in Mortgage Subrogations Despite Drop in New Loans: Latest Report

Mortgage subrogations continue to rise, despite the sharp drop in the formalization of new loans for the purchase of housing. The change of financial institution to improve loan conditions represented 15.2% of the operations signed with idealista/mortgages in Junecompared to 9.1% 12 months ago.

According to the latest report from the mortgage brokermortgage subrogations accounted for 11.9% of firms in the whole of the second quarter, compared to 10.7% in the first three months of the year.

As regards demand, the average amount of the mortgage requested to carry out the subrogation in the second quarter was 161,985 euros, which shows a decrease of 1.5% compared to the same period of 2022and represents an average financing of 56% with respect to the purchase price of the homes.

The vast majority of requests are for loans of less than 200,000 euros (76.9% of the total), with the tranche of between 100,000 and 200,000 euros being the most common (52%), according to the report by the idealista mortgage broker.

Regarding the profile of the applicant, more than half are households with monthly incomes of up to 4,000 euros, with those who earn between 2,000 and 4,000 euros per month representing the highest percentage (46.2% of the total).

Madrid, the region with the most requests and a higher amount

If we look at the data by Autonomous Community, we discover that Madrid stands out both for the interest in changing the bank mortgage and for the average amount of the subrogation.

According to idealista/mortgages, the region represented 31.9% of the requests made in June, more than Catalonia and Andalusia combinedwhich have been the next two most prominent autonomies in the ranking with a weight of 17.5% and 13.1%, respectively.

Regarding the amount requested, the Community of Madrid once again leads the national ranking with an average of 194,660 euros in the sixth month of the year, followed by the Balearic Islands, with an average of 191,855 euros; and Catalonia, with 189,324 euros. At the bottom of the list are Extremadura and Aragón, with less than 110,000 euros.

In Castilla-La Mancha, the average amount of the request is 120,000 euros.